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Two echelon supply chain model for deteriorating items with effective investment in preservation technology

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  • Shilpy Tayal
  • S.R. Singh
  • Rajendra Sharma
  • Anand Chauhan

Abstract

The objective of this study is to develop a model for a two echelon supply chain, in which retailers' demand is seasonal with expiration date and he invests on the preservation technology to reduce the rate of product deterioration. This paper examines consumers' response to expiration dates for grocery store perishable products. We develop a conceptual framework that captures the frequency with which consumers check expiration dates and their willingness to pay for a perishable over its shelf-life. A solution procedure is presented to determine an optimal replenishment cycle, shortage period and preservation technology cost such that the net profit for the supply chain is maximised. A numerical example and sensitivity analysis are given to illustrate the model.

Suggested Citation

  • Shilpy Tayal & S.R. Singh & Rajendra Sharma & Anand Chauhan, 2014. "Two echelon supply chain model for deteriorating items with effective investment in preservation technology," International Journal of Mathematics in Operational Research, Inderscience Enterprises Ltd, vol. 6(1), pages 84-105.
    • Handle: RePEc:ids:ijmore:v:6:y:2014:i:1:p:84-105
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    Citations

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    Cited by:

    1. Janssen, Larissa & Claus, Thorsten & Sauer, Jürgen, 2016. "Literature review of deteriorating inventory models by key topics from 2012 to 2015," International Journal of Production Economics, Elsevier, vol. 182(C), pages 86-112.
    2. Zhang, Jianxiong & Liu, Guowei & Zhang, Qiao & Bai, Zhenyu, 2015. "Coordinating a supply chain for deteriorating items with a revenue sharing and cooperative investment contract," Omega, Elsevier, vol. 56(C), pages 37-49.
    3. Md. Abdul Hakim & Ibrahim M. Hezam & Adel Fahad Alrasheedi & Jeonghwan Gwak, 2022. "Pricing Policy in an Inventory Model with Green Level Dependent Demand for a Deteriorating Item," Sustainability, MDPI, vol. 14(8), pages 1-16, April.
    4. Sadia Samar Ali & Haripriya Barman & Rajbir Kaur & Hana Tomaskova & Sankar Kumar Roy, 2021. "Multi-Product Multi Echelon Measurements of Perishable Supply Chain: Fuzzy Non-Linear Programming Approach," Mathematics, MDPI, vol. 9(17), pages 1-27, August.
    5. Pinky Saxena & S. R. Singh & Isha Sangal, 2016. "A Multi Item Integrated Inventory Model with Reparability and Manufacturing of Fresh Products," Modern Applied Science, Canadian Center of Science and Education, vol. 10(7), pages 1-74, July.

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